LG Electronics shares plunge 5% on 27% drop in Q2 net profit

Shares of LG Electronics plunged over 5% on Friday morning after the company declared its Q2FY25 results on Thursday. The net profit for the quarter declined 27% YoY.

The shares opened 5% lower at ₹1,590 apiece on the NSE and recouped partial losses to trade at ₹1,630 apiece on the NSE at 9:26 am.

LG Electronics India Ltd, one of the leading appliance and consumer electronics makers, on Thursday reported a 27.3% fall in its net profit to ₹389.43 crore in the Q2FY26

The company, which was listed on October 14, had a net profit of ₹535.70 crore during the July-September period a year ago, according to a regulatory filing from LG Electronics India Ltd.

Its revenue from operations was almost flat at ₹6,174.02 crore in the September quarter of FY26. It was ₹6,113.88 crore in the corresponding period a year ago. During the quarter, LG Electronics India registered a drop in their EBITDA margin to 5.48% from 7.57% on a year-on-year basis.

"The EBITDA margin drop was a result of the combined impact of rising commodity prices and incremental investments in festive go-to-market initiatives, to support the company's distributors during tough market conditions," the company said in its earnings statement. Total expenses of LG Electronics India were ₹5,728.95 crore in the second quarter of FY26, up 5% year-on-year.

This is the maiden quarterly results filing of LG Electronics India, part of the South Korean Chaebol LG Electronics Inc.

In the September quarter, LG Electronics India's revenue from the home appliance & air solutions (H&A) segment was marginally down to ₹3,948 crore. It was at ₹3,953 crore in the year-ago period.

Its H&A includes business such as air conditioners, refrigerators, microwave ovens, washing machines, dishwashers, compressors, HVAC, water purifiers and air purifiers. Its home entertainment (HE) segment revenue grew by 3% y-o-y in Q2FY26, supported by increased festive season demand in the TV segment.

The home entertainment segment includes televisions (flat panel, signage, projectors, monitor TV), audiovisual, monitors and personal computers. In the first half (H1) of FY26, LG Electronics' total income was marginally down at ₹12,591.17 crore.

"H1 of 2026 presented some macroeconomic headwinds, including a cool summer, geopolitical challenges, tariffs, and forex fluctuations," said its Managing Director, Hong Ju Jeon. Despite this, it demonstrated resilient sales growth, gaining market share and maintaining stable profitability.

"We are now strategically accelerating our future growth by expanding our domestic footprint, followed by our focus on ramping up exports as global conditions normalise," he said.

The shares of LG Electronics got a bumper listing day gains of 48%.